US Settles With EU at WTO
Compensation talks between the United States and the European Union ended on Saturday at the World Trade Organization with an agreement to open new trade sectors, none of which would directly benefit the Internet gambling industry.
The two WTO members have been negotiating an agreement since May over the United States' decision to withdraw gambling services from its commitments to the General Agreement on Trade in Services. Under GATS, WTO members may modify their commitments, but in doing so must compensate other members affected by the change.
The agreement reached on Monday relates to warehousing services, technical testing services, research and development services and postal services relating to outbound international letters, said Gretchen Hamel, spokesperson for U.S. Trade Representative.
RGA Seeks Action Against the US on Behalf of European Operators
The Remote Gambling Association has filed a complaint against the United States for discrimination based on violations of World Trade Organization rules. The group asserts that the U.S. Department of Justice is in violation of international trade laws by threatening and pressing criminal prosecutions, forfeitures and other enforcement actions against foreign online gaming operators while allowing domestic online gaming operators, namely those involved with horse betting, to continue operating. The same complaint was brought, and is still being fought, by Antigua and Barbuda.
The complaint, filed under a provision of the EU Trade Barriers Regulation which enables any EU company or association of companies to complain about violations of WTO law by non-EU jurisdictions, follows Monday's announcement of a compensation agreement between the United States and the European Union over the United States' decision to withdraw gambling services from its commitments to the General Agreement on Trade in Services.
The European Commission must now investigate the complaint, and if it finds that a breach in WTO law has caused harm to EU businesses it would start a WTO dispute settlement case against the United States.
Big Three Internet Companies in Major Gambling Settlement
High-profile Internet giants Microsoft, Yahoo and Google have forked over a combined $31.5 million in a settlement with the U.S. Justice Department over allegations the three promoted illegal Internet gambling.
The settlements stem from a five year-old DOJ investigation into U.S. companies taking advertising for offshore Internet gambling companies.
As for the Internet giants in question, Microsoft agreed to pay $4.5 million to the DOJ, $7.5 million to the International Center for Missing and Exploited Children and $9 million to fund a three-year public service ad campaign "to inform and educate a target audience comprised of college level or younger people that online gambling enterprises are illegal under U.S. law." Yahoo has agreed to do likewise and will pay $3.5 million to the DOJ and $4.5 million to fund their own ad campaign.
EGBA Wants Justice in Denmark
The European Gaming and Betting Association (EGBA) is calling for the European Commission (EC) to take the Danish government to the European Court of Justice (ECJ) for its monopolistic practice of blocking foreign online gaming operators.
The EC's last move against the country was March 21, 2007, when it issued reasoned opinions, or final warnings before taking court action, warning them that their monopolistic control of online gambling violates higher level EU laws on free access across EU state borders.
But an editorial in EGBA's latest newsletter urges the EC to back up its own words with actions and take the next step: Initiate an ECJ trial against Denmark.
In late November, former member of European Parliament Freddy Blak wrote an open letter to EU Commissioner Charlie McCreevy, imploring him to take action against the country. wants to end the Danish state gambling monopoly, and it appears that he is taking matters into his own hands.